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Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

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Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#81
post #69
post #26

A few issues: 1) Will implementing these features actually increase profit? This was never addressed. 2) Restaurant revenue does not grow exponentially into the sky like many internet businesses do. There are hard limits on growth. Thus the ROI on measurement (A/B testing) won't be nearly as high. 3) Is a digital ordering system (with all the bells and whistles) something that is high on the priority list of a typica…

I've worked around the restaurant industry for 10+ years and am a founder of Ordr.in, part of 500S' food portfolio. Digital ordering absolutely increases profitability. Average tickets are higher (estimates are 15-20% higher) and cost of serving the order reduced. Plus online orders smooth out and extend demand. I.e. serve more customers without adding fixed cost. Restaurants are just beginning to adopt online and di…

great to see u jump in david :)

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#82

God I'd hate this. Restaurants are places of relaxation, company, discovery, beautiful foods. I want to order something which sounds good and then see whether it is - I want it to come to me as a surprise - "Oh Tuscan Rabbit? I wonder how the chef will do it confit... Oh! Wow, let's try this then!" It's not about efficiency, it's about atmosphere. I don't want a glowing screen anywhere near my dining table. I don't w…

interesting. rather elitist perspective, and seriously out-of-touch with most mainstream consumers. I'd hate to build a business based on pissing off customers, but I guess you're welcome to give that a spin. best of luck with that.

Heh, well, I've just got back from a lovely restaurant, and I have to admit that they had a wonderful cellar and a well-matched sommelier, so this will be brief, as I'm having to re-read quite diligently!

I don't really think I'm being elitist - but I will admit that I'm talking about a sector within a market. Clearly I'm not talking about fast food, I'm talking about a specific type of dining experience. If this technology existed within a KFC (and was executed well) I'd like it (yes, I'm that weird guy that likes good dining and the occasional meal of absolute junk...)

I don't think that most restaurants currently piss off customers though - if they did, they'd generally be broke I think. I think you're assuming that the changes you suggest would make the best even better - and I genuinely don't think that would be the case. I think that character, personality, idiosyncrasy etc. are the makers of a great restaurant as much as the food, and I didn't feel like these ideas fitted that - at least within certain markets.

If you're ever in London and you fancy a discussion about what would really make for an incredible restaurant, and you fancy discussing it over wonderful food, give me a shout...

(Dinner's on me, of course)

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#83
post #50

I'm a restaurateur, and a big fan of dmc, I enjoyed his take, but... I've sketched out probably every idea Dave has illustrated here, and most of them don't make it far enough to even bust out an MVP. I have the advantage of a massive network of restaurant owners, from high end to QSR (quick service restaurant), and an even bigger network of hospitality staff. They chew on them, and spit them up. It's not that it's i…

happy to chat... ping me @davemcclure.

if it's really the case that none of your staff at all of your nightclubs / restaurants have these issues, them I'll eat my shorts & buy you a beer (either way, I'll buy u a beer in fact ;)

certainly it's been my experience that technology used to improve efficiency may not always be appropriately / perfect, but in MANY use cases where I've had to wait or choose from confusing menus, I can't imagine how it wouldn't help.

however, I'm open to hearing why I'm wrong if you have data to back it up.

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#84
post #50

I'm a restaurateur, and a big fan of dmc, I enjoyed his take, but... I've sketched out probably every idea Dave has illustrated here, and most of them don't make it far enough to even bust out an MVP. I have the advantage of a massive network of restaurant owners, from high end to QSR (quick service restaurant), and an even bigger network of hospitality staff. They chew on them, and spit them up. It's not that it's i…

But having a competent operator and well trained staff would be the problem that most restaurants have wouldnt you say?

Being a good operator yourself, this product may not be useful, but could be for someone else?

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#85

Earlier quoted context omitted.

It's not merely efficiency, though--the reason that these types of ideas suck is that they only care about buy-in from customers. What the customer thinks would enhance their experience. What the customer thinks would be nice "too many choices oh noes!". The fact is that for the true clients in the market (the restaurants ), we need to look at what makes their lives easier. And over the course of centuries, we've fig…

umm... 1) if it's a customer problem, it's a restaurant problem. 2) simplicity helps restaurants as much as customers 3) shorter wait time / quicker payment helps restaurants as much as customers 4) happy customers order more, come back more often 5) pretty sure we have experience in the industry, from 20+ investments in the category. certainly several of our entrepreneurs know what the hell they're doing, especially…

Thanks for the reply! I'll try to explain my arguments to your points. I know a few folks locally who've been batting around ideas in this space, so it's a topic somewhat near at hand to me. :)

1) if it's a customer problem, it's a restaurant problem.

For certain classes of problems, sure, but there are things like your stated "I want movies, media, etc. while I wait on my meal" that may or may not be worth addressing for any given restaurant--the degree to which the ambiance entertains the diner could be great (a bar with live bands) or nonexistent (a quiet steakhouse). A restaurant need not concern itself with your vegetarian friend if doing so would significantly complicate their supply chain or logistics. It's not always a restaurant problem by any stretch.

2) simplicity helps restaurants as much as customers

The general principle of simplicity, sure, but the implementation can be a headache. If the marginal utility and increased revenue of having four times the number of burger options outweighs the simplicity of limiting to two entrees and nailing the supply chain but getting lower sales, then why bother? Simplicity isn't always needed or desired, and is a preference of the diner just as much--if not more!--than of the restaurant.

3) shorter wait time / quicker payment helps restaurants as much as customers

No argument here, but I think that this is just as easily solved using existing resources (i.e., train employees better) than implementing a whole electronic ordering system.

4) happy customers order more, come back more often

Happy customers do come back more often, and may order more, but again you don't need to buildout a crazy electronic ordering system From The Future (tm) to make your customers happy--I've witnessed people at very high-end high-touch establishments actively turn away attempts at injecting technology (electronic wine lists, in this case) into what they prefer to be a human-to-human interaction.

5) pretty sure we have experience in the industry, from 20+ investments in the category. certainly several of our entrepreneurs know what the hell they're doing, especially ElaCarte (also YC co & Lightbank co)

I wish you luck on your investments! I'm sure you've got some awesome folks you're working with.

~

I'm not assuming a zero-sum game--I'm simply noting that while it helps both sides, it doesn't help the other side enough perhaps to justify a real change in business. You notice the big change towards electronic ordering (see the Jack in the Box kiosks) in large nation-wide chains where they've so relentlessly optimized and cheapened the dining experience that shaving fractions off their costs on ordering makes sense. For a taqueria or something, the value prop probably isn't there.

EDIT: Also, after looking at your disclaimed companies... my God, man, you really seem to like curated experience and deliveries. Any thoughts you'd like to share on the topic, where it's going, etc.?

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#86

Earlier quoted context omitted.

It's not merely efficiency, though--the reason that these types of ideas suck is that they only care about buy-in from customers. What the customer thinks would enhance their experience. What the customer thinks would be nice "too many choices oh noes!". The fact is that for the true clients in the market (the restaurants ), we need to look at what makes their lives easier. And over the course of centuries, we've fig…

umm... 1) if it's a customer problem, it's a restaurant problem. 2) simplicity helps restaurants as much as customers 3) shorter wait time / quicker payment helps restaurants as much as customers 4) happy customers order more, come back more often 5) pretty sure we have experience in the industry, from 20+ investments in the category. certainly several of our entrepreneurs know what the hell they're doing, especially…

I sincerely hope that one of the companies working on solving this restaurant problem, do solve it; partially for the sake of better experience for myself, partially to get all the idiot restaurant owners who think they are in power, out of business.

Speaking of which, perhaps instead of trying to sell the future to people who live in the past, these companies should raise more money and open up their own chains? That would be ballzy, but if the food is good and the experience is great, they could run profitable restaurants, and show that people are ready for the tech.

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#87

Earlier quoted context omitted.

interesting. rather elitist perspective, and seriously out-of-touch with most mainstream consumers. I'd hate to build a business based on pissing off customers, but I guess you're welcome to give that a spin. best of luck with that.

Heh, well, I've just got back from a lovely restaurant, and I have to admit that they had a wonderful cellar and a well-matched sommelier, so this will be brief, as I'm having to re-read quite diligently! I don't really think I'm being elitist - but I will admit that I'm talking about a sector within a market. Clearly I'm not talking about fast food, I'm talking about a specific type of dining experience. If this tec…

hope to share a beer and a meal in London sometime then... if we can get the waiter's attention ;)

Re: Deep Thoughts on the Food Tech Revolution by Captain Obvious McClure

#90

Earlier quoted context omitted.

If I want the most efficient dining experience I'll order in or go to a fast food place. I go to a restaurant for the UX: a date night, the atmosphere, getting out of the apartment, people watching, hanging with friends, etc. Downtime is the point! It is supposed to take time. It gives me a relaxed period of time to talk with the people I'm with while drinking beer/wine and waiting for the food to arrive. To enjoy th…

so you really believe that keeping people waiting is what they want? seriously? seriously? bueller? ok fine, guess I'm the only customer in the world who hates waiting in fine restaurants. yeah, right.

Waiting? Waiting for what? Food obviously takes time to prepare, so there's a necessary wait as component of the experience. Of course, the "unnecessary" waiting: for a table, for a waiter's attention, etc. are suboptimal. But, I'm not sure an iPad is the solution to that problem.
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